Vietnam’s Ministry of Agriculture Proposes Adopting Three Rice Varieties, including a Chinese Rice Variety, as the National Standard

An agency under the Ministry of Agriculture and Rural Development has introduced a proposal to adopt three rice varieties as the standard for Vietnam-grown rice, causing an uproar as critics voiced concern over the options. On Thursday [8 September 2016], the agency in charge of agro-forestry, seafood, and salt production held a conference to solicit feedback from industry experts on the three types of rice it wants to set as the Vietnamese standards…Full Article: VBN Sept 2016

Key Point

Vietnam’s Ministry of Agriculture and Rural Development proposed that Jasmine 85 (USA origin), Nang Hoa 9 (USA-Vietnam origin), and ST 21 (China, similar to RVT rice) rice varieties be used as the national standard.

ChinaAg Comments

In June 2016, Vietnam and China signed agreements relating to Vietnamese rice and rice bran exports. As a result of the new phytosanitary protocol, Chinese officials will carry out inspections of rice shipments in Vietnam as opposed to in China.

From 2011 to 2015, Chinese rice imports increased from 569,000 MTs to 3.35 million MTs. China’s top rice suppliers include Vietnam, Thailand, Myanmar, Pakistan, and Cambodia.

In 2014, China comprised 40% of Vietnam’s rice exports, and 80% to 90% of the country’s rubber, dragon fruit, and cassava (powder) exports.

In August 2014, China planned to close some border points along the Chinese-Vietnamese border, including the Tan Thanh checkpoint in Lang Son Province (across from Guangxi region). Chinese authorities stated that the checkpoints need to be closed in order to institute new regulations on farm produce imports.

From January to April 2013, 64% of Vietnam’s canceled rice contracts were with Chinese partners.

In 2012 and 2013, China purchased more than 1.6 million MTs of rice per year from Vietnam and roughly 500,000 MTs per year from Pakistan. The vast majority of these imports (80% by volume) were funneled in via the southern Chinese ports of Shenzhen, Huangpu, and Hong Kong.

From 2006 to 2011, Thailand was the primary supplier of rice to the China. Starting in 2010, a shift towards Vietnamese imports began to occur and by 2012, Vietnam overtook Thailand as the top supplier to China.